By Reuben Staines
Staff Reporter


South Korea secured an agreement with the Organization of Petroleum Exporting Countries (OPEC) Wednesday to cooperate with Asia-Pacific nations in tackling rising oil prices, government officials said.

In a meeting on the sidelines of the seventh Asia-Pacific Economic Cooperation (APEC) energy forum in the ancient capital of Kyongju, Adnan Shihab-Eldin, OPEC’s acting secretary-general, reached a deal with Lee Hee-beom, South Korean minister of commerce, industry and energy, to set up a formal dialogue channel between the two international groupings.

South Korean officials hoped the accord will improve access for APEC member nations to the world’s richest oil-producing collective.

``The deal, once implemented, will give oil-consuming countries an opportunity to get a clear picture of production capacity, while producers will be better informed of spending patterns,’’ Lee said following the meeting.

The 21 members of APEC make up 58 percent of global oil demand, while OPEC _ consisting of 11 countries including Iran, Iraq, Kuwait and Saudi Arabia _ produces 41 percent of the international oil supply.

Officials said Lee initially suggested separate discussions between OPEC and Northeast Asian powers China, Japan and South Korea. However, OPEC preferred dealing with APEC as a group.

In their meeting, Shihab-Eldin also said OPEC plans to increase its oil production by 5 million barrels a day by 2010 to help meet growing global demand.

OPEC production capacity will reach 38 million barrels a day, up from the current 32.5 million barrels, the Kuwaiti executive said.

But Shihab-Eldin urged oil-consuming nations to expand their refining facilities, arguing that high oil prices are effected in part by how efficiently crude oil is processed into useable energy products.

South Korea is chairing this year’s APEC energy forum, which is set to end Thursday.

The discussions are aimed at preparing for the two-day APEC leaders’ summit scheduled to kick off in the southern port city of Pusan on Nov. 18.

Koh Jung-sik, an official at the commerce ministry, said South Korea is seeking to take a leading role in facilitating communications between OPEC and APEC.

However, he said the agreement must still be ratified by ministers from the oil-producing nations. ``The OPEC head believed there is no reason why they should reject the proposal,’’ Koh said.

The agreement between APEC and OPEC follows a pact reached recently between the oil-producing bloc and the European Union.

rjs@koreatimes.co.kr